Alcoa Corporation has agreed to sell its Gum Springs, Arkansas waste treatment facility to Veolia ES Technical Solutions (VTS). The transaction is expected to close in the first quarter of the year.
Alcoa will receive USD200 million in cash at closing for the sale of Elemental Environmental Solutions (EES), a wholly-owned subsidiary of Alcoa that owns the 1,300-acre hazardous waste treatment business in Gum Springs. An additional USD50 million will be paid to Alcoa if certain post-closing conditions are satisfied. The sale is subject to regulatory approval and customary closing conditions.
In October 2019, Alcoa announced its intention to pursue sales of non-core assets over the next 12 to 18 months with the goal of generating between USD500 million to USD1 billion in cash.
“This planned transaction shows our commitment to execute on our strategy and the sale of non-core assets, which we announced in the third-quarter of 2019,” said Alcoa president and CEO Roy Harvey.
The Gum Springs facility employs around 70 people and specializes in various environmental management processes, including the use of two permitted hazardous waste incinerators and a landfill. The site has traditionally processed spent potlining for the North American smelter industry, and the transaction includes a multi-year agreement to continue those services for Alcoa.